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SECTION HEADING GOES HERE

the contract and without prejudice to his other rights, be entitled to claim damages from the supplier.

22. Penalties

22.1Subject to GCC Clause 25, if the supplier fails to deliver any or all of the goods or to perform the services within the period(s) specified in the contract, the purchaser shall, without prejudice to its other remedies under the contract, deduct from the contract price, as a penalty, a sum calculated on the delivered price of the delayed goods or unperformed services using the current prime interest rate calculated for each day of the delay until actual delivery or performance. The purchaser may also consider termination of the contract pursuant to GCC Clause 23.

23. Termination for default

23.1The purchaser, without prejudice to any other remedy for breach of contract, by written notice of default sent to the supplier, may terminate this contract in whole or in part:

(a)if the supplier fails to deliver any or all of the goods within the period(s) specified in the contract, or within any extension thereof granted by the purchaser pursuant to GCC Clause 21.2;

(b)if the Supplier fails to perform any other obligation(s) under the contract; or

(c)if the supplier, in the judgment of the purchaser, has engaged in corrupt or fraudulent practices in competing for or in executing the contract.

23.2In the event the purchaser terminates the contract in whole or in part, the purchaser may procure, upon such terms and in such manner as it deems appropriate, goods, works or services similar to those undelivered, and the supplier shall be liable to the purchaser for any excess costs for such similar goods, works or services. However, the supplier shall continue performance of the contract to the extent not terminated.

23.3       Where the purchaser terminates the contract in whole or in part, the purchaser may decide to impose a restriction penalty on a supplier  by prohibiting such supplier from doing business with the Parliament for a period of 10 years.

23.4        If a purchaser intends imposing a restriction on a supplier or any person associated with the supplier, the supplier will be allowed a time period of not more than 14 (fourteen)   days to provide reasons why the envisaged restriction should not be imposed.  Should the supplier fail to respond within the stipulated fourteen (14) days the purchaser may regard the intended

Procurement of Catering Services forTaking Parliament to the People: T9/2/2010

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